Iron ore imports rising in Indian market after the Supreme Court suspended some major mines in Odisha. Following JSW & Tata Steel, Tata International is expecting a cape size vessel of 168,000 MT at Krishnapatnam port on 11 Jul, 2014.
Parcel is heard to be supplied from Rio Tinto’s Robe River mining company and has been loaded from Australia’s Walcott port on 26 Jun, 2014. There is no official confirmation from the company officials.
Tata Steel has already shipped 4-5 vessels at Haldia & Paradip port from Australia during April-June. JSW Steel is expecting a parcel of 168,000 MT at Krishnapatnam port in first week of July.
Rising Iron Ore Prices in Global Market will slow down Indian Imports
Increasing spot Iron ore prices in global market may weigh upon Indian Iron ore imports; however lot will depend on Odisha government’s further step for 18 merchant mines, which have been closed on the Supreme Court’s directive.
18 merchant mines, which are non- operational, contributed about 19 MnT of production in FY14. On a monthly basis, there is a production loss of about 1.5 MnT.
Problems may rise if Odisha Government do not act fast on Second Deemed Renewal
Iron ore problems will get deeper in case Odisha government does not act fast on renewing mines working on second deemed renewal. Speaking to several Sponge iron and steelmakers, SteelMint assessed that there is shortage of Iron ore lumps in domestic market, but with decent supply of Pellets in merchant market, there has not been an abnormal price hike.
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